At the breakeven point the firm is making the same accounting profit it could el

Question

At the breakeven point the firm is making the same accounting profit it could elsewhere. the firm is losing an amount equal to variable cost. price is equal to average variable cost. the firm is losing an amount equal to fixed cost. At the breakeven point the firm is making the same accounting profit it could elsewhere. the firm is losing an amount equal to variable cost. price is equal to average variable cost. the firm is losing an amount equal to fixed cost. the firm is making the same accounting profit it could elsewhere. the firm is losing an amount equal to variable cost. price is equal to average variable cost. the firm is losing an amount equal to fixed cost. the firm is making the same accounting profit it could elsewhere.

Explanation / Answer

At breakeven point, The profit reached becomes equal to the fixed cost or we can say the firm can payback for the fixed cost it has incurred initially. So, the answer is:

d) the firm is losing an amount equal to fixed cost.

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